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Cheap Flash makes Intel lower Q1 forecast

Consumers strike up chorus of tiny violins

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In brief Intel is lowering expectations for the first quarter of 2008 because flash memory prices are too cheap for comfort.

Chipzilla said today it expects a gross profit margin of about 54 per cent, down from 56 per cent forecast in January. The company blames the 2 per cent difference on a market saturation of NAND flash memory driving down prices.

What puts a smile on customers' faces doesn't necessarily follow for a company that entered a joint venture with Micron Technology to produce memory chips. Common knowledge dictates that it would require approximately 15 more facial muscles to replicate Intel's reaction to a memory glut. All other expectations for the quarter remain as they were back in January, the company said.

Back in January, Intel predicted it would post first quarter revenue between $9.4bn and $10bn. ®